GBP/USD Strengthen from U.K. Manufacturing Data

Dec 01, Forex: The pound gained against the greenback immediately after the U.K. manufacturing data release this Tuesday. The manufacturing data disappointed but the positive vibes from banking industry supported the currency position.

The Governor of Bank of England, Mark Carney asserted no change in scheduled capital regulation of banks. This raised the sentiments up and gave support to the currency.

GBP/USD was at 1.5085, up with 0.18% during early part of the trading day. The pair’s highest was 1.5126 since November 26.

The support level for cable was 1.4990, Monday and a seven-month low and the resistance at 1.5197, high of November 23.

The BOE Governor was addressing the financial stability report and stress test results of U.K. banks also. The central bank stated that banks in U.K. would require holding 10 billion pounds of capital but later said that there is no immediate implementation of the same. It also said that all 7 major banks in the country have passed the stress test. This has apparently boosted the confidence of investors.